A prominent cryptocurrency analyst and trader has issued a warning that Bitcoin (BTC) could experience a significant drop if it fails to maintain a crucial support level. The analyst, who goes by the pseudonym DonAlt, has a following of 65,100 subscribers on the Technical Roundup YouTube channel. He suggests that Bitcoin may correct by over 13% from its current value.

DonAlt emphasizes that if Bitcoin is unable to hold the $80,000 mark as support, a bearish trend could persist. He expresses his preference for Bitcoin to maintain the $95,000 level, as a breakdown below this point would indicate a lack of support and necessitate the establishment of new price structures. He expresses concern that if Bitcoin falls below $80,000, the situation would become increasingly unfavorable.

The analyst also mentions the possibility of a bullish reversal if Bitcoin manages to regain the $98,000 level as support on the weekly chart. He finds it particularly promising if the candle reverses and closes above this level, describing it as “hilariously bullish” and an excellent setup for further gains. He suggests setting a stop below the low and aiming for new highs.

However, DonAlt cautions that a close below the $98,000 level would worsen the outlook, as there would be a lack of immediate support. He notes that while an upward price movement is smooth and favorable, a downward movement lacks readily available support, making the situation more challenging. Nonetheless, he clarifies that this does not mean there is no support, but rather that it is more difficult to identify the level at which the decline may halt.

At the time of writing, Bitcoin is trading at $92,483, representing a 2.5% decline over the past 24 hours.

To stay updated with the latest developments, consider subscribing to receive email alerts directly to your inbox. You can also follow us on X, Facebook, and Telegram.

Source: DonAlt/YouTube

Generated Image: Midjourney